Green Thumb Industries, a profitable U.S. multistate cannabis operator, may be undervalued with the potential for its stock to double. The Chicago-based company has reported GAAP profitability since 2020 and recently renegotiated its licensing deal with 50%-owned Rythm, switching to a flat fee that increases operating leverage and could drive significant earnings growth. Additional catalysts include a conditional license to operate in Texas' upcoming medical cannabis market and an aggressive share buyback program recently expanded by $100 million, representing about 6% of its total share count. Despite trading at 38.8 times forward earnings, analysts may be underestimating the company's profitability prospects, making it a strong choice for investors bullish on U.S. cannabis legalization.
RYTHM, Inc.Green Thumb renegotiated its licensing deal with 50%-owned Rythm, switching to a flat fee that increases operating leverage and could drive significant earnings growth.
Article states Green Thumb is undervalued with 100% upside, citing profitability, buyback expansion, and licensing deal renegotiation.